How to Diversify Your Portfolio With Precious Metals

Don’t keep all your eggs in one basket, so the saying goes. It means don’t rely too much on any one thing, and it applies particularly well to investments. If you sink all your money into a particular company and that company turns out to be Apple or Microsoft, great. If it turns into one of those thousands of companies that fail every year, you could be left with nothing.

That’s why it’s so important to spread your investments around, so if one or two happen to be doing poorly, others that are doing well can keep your portfolio strong. This is called diversification, and it’s the watchword of the stable investor. When you invest, you’re looking to make your money grow, ideally to keep you secure in your retirement. You don’t want to gamble. That’s why you it’s crucial to diversify your portfolio.

Diversifying With Gold and Silver Rather Than Stocks or Bonds

Stocks, depending upon the type, tend to be a much more volatile investment than precious metals. With a stock, you are actually buying part of a company, so your fortunes rise and fall with those of the company. Gold is gold no matter what happens. It may be affected by market forces, but is not tied to any one company or market condition.

With a bond, you are essentially lending an entity a certain amount of money that it will pay back to you with interest — the value of the bond. This may yield some returns, but often not very big ones, and do you really want your entire retirement to rely on whether entities will be able to pay back the loans you’ve given them? An investment in gold and silver means you own a real asset that cannot become worthless and is not reliant on other people’s success for its value.

Diversification Options

You have three basic choices. You can adopt an aggressive, active portfolio, with mostly products that have a high potential upside but a big risk of failure as well. If retirement is far off and you have some money to play with, this may be your preferred strategy. Alternatively, you can adopt a very safe, passive strategy, with products that carry low risk. If you’re closer to retirement and are relying on your investment assets for support, this may be your choice. You can also choose something in between, with a relatively even mix of safe and volatile investments. Regardless of your choice, gold and silver and other precious metals should be a big part of your investment strategy. It can protect you in tough markets and see big gains under the right conditions, so you have the benefits of aggressive and passive investing in one investment product.

Diversifying With Precious Metals

As you can see, including your precious metals in your portfolio as a buffer against volatile markets and to further diversify your portfolio is beneficial. Gold and silver not only remain relatively stable across markets due to their intrinsic value, but they also tend to perform better when markets are doing poorly, as investors rush to find a safe haven for their money. Thus, if you have gold or silver in your portfolio, you have a product that’s designed exactly for what diversification is all about, something that will likely increase in value when other products are doing poorly. That’s why so many investors turn to gold and silver as a safe haven.

You can learn more about the value of diversifying with gold and other precious metals from the experts at Fortress Gold Group. Contact Fortress Gold Group today and speak to a precious metals expert at 1-800-777-6177 or visit our website to learn more about investing in Precious Metals.